Institutional investors (pension funds, insurance companies, asset managers, private equity) are the worst at doing anything about climate or climate finance
Sitting on $100+ trillion in AUMs, they contribute a pathetic $24b, or just 1.2% of total global climate finance
THREAD
They're also moving backwards: In 2023, this category stood at $29b, or 1.5% of total flows. Between 2023 and 2024, while overall global climate finance grew to cross $2 trillion, institutional investor commitments shrank by 17%, a scandal
2/8
Other "bad guys" dragging down the global energy transformation and climate action:
1 Whopping 23% drop in Official Development Assistance (ODA) to $174b, steepest annual decline on record, with 96% of this drop driven by 5 countries: the US, UK, Germany, France and Japan
3/8
2 Big bad banks: commercial institutions still hold 74% of their overall energy portfolios in fossil fuels. And 93% of those bank fossil investments are in companies expanding fossil fuel production, rather than phasing it down
4/8
3 Climate finance for Agriculture, Forestry, Land Use, and Fisheries collapsed from $13b in 2021 to $8b in 2024, yet faces an annual funding requirement 153 times higher. Heavy industry (steel, cement, chemicals) received $29b in 2024, facing a 31x investment gap
5/8
4 Out of $64b in global adaptation finance in 2024, the private sector contributed a pathetic $3.8b (~6%)
6/8
The Heroes: Households deployed $333b into climate solutions in 2024 (buying EVs, heat pumps, and rooftop solar). That means ordinary citizens deployed nearly 14 times more primary climate capital than multi-trillion-dollar institutional asset managers
7/8
END
Source: glcf.climatepolicyinitiative.org
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